We publish no single base value for Labcorp. Our valuation methods put it between $227.21 and $315.05 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $315.05 | -15.4% | free cash flow $1.29bn, growth 6.02% for 5 years, then fading to 3% over 5 more, discounted at 9.18%; stress floor $198.69 |
| Exit multiple (P/E) | $227.21 | -39.0% | earnings per share $18.49 valued at 15.17× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.86 (5 years of monthly returns against the S&P 500; standard error 0.17) |
| Peer beta | 0.77 (median of 58 S&P 500 Health Care companies) |
| Blend of own and peers | 0.85 (87% own, 13% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.90 (0.67 × 0.85 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 9.18% |
Free cash flow grows 6.02% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $1.29bn | — | — |
| Year 1 | 6.02% | $1.36bn | 0.9159 | $1.25bn |
| Year 2 | 6.02% | $1.45bn | 0.8389 | $1.21bn |
| Year 3 | 6.02% | $1.53bn | 0.7684 | $1.18bn |
| Year 4 | 6.02% | $1.63bn | 0.7038 | $1.14bn |
| Year 5 | 6.02% | $1.72bn | 0.6446 | $1.11bn |
| Year 6 | 5.52% | $1.82bn | 0.5904 | $1.07bn |
| Year 7 | 5.01% | $1.91bn | 0.5408 | $1.03bn |
| Year 8 | 4.51% | $2.00bn | 0.4953 | $988.70m |
| Year 9 | 4.01% | $2.08bn | 0.4536 | $941.85m |
| Year 10 | 3.50% | $2.15bn | 0.4155 | $892.88m |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (9.18% − 3%) | $35.82bn |
| Terminal value in today's money | $14.88bn |
| Present value of years 1–10 | $10.83bn |
| Total present value | $25.71bn |
| Shares outstanding | 81.60m |
| Value per share = total ÷ shares | $315.05 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 1.02% | Growth 6.02% | Growth 11.02% |
|---|---|---|---|
| 8.18% | $277.31 | $377.78 | $512.17 |
| 9.18% | $233.28 | $315.05 | — |
| 10.18% | $201.47 | $269.87 | — |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.86 | 9.00% | $324.79 |
| Peer beta | 0.77 | 8.59% | $349.02 |
| Adjusted beta (used) | 0.90 | 9.18% | $315.05 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $18.49 |
| Year 1 | 6.02% | $19.61 |
| Year 2 | 5.11% | $20.61 |
| Year 3 | 4.48% | $21.53 |
| Year 4 | 4.04% | $22.40 |
| Year 5 | 3.73% | $23.24 |
| Earnings per share in year 5 | $23.24 |
| Exit P/E (the stock's own median P/E) | 15.17× |
| Value in 5 years = earnings × P/E | $352.49 |
| Discounted at 9.18% over 5 years: ÷ 1.5514 | $227.21 |
We publish no single base value for Labcorp. Our valuation methods put it between $227.21 and $315.05 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $274.39 and a 10% chance it is above $559.69 in a year; a 58% chance it is higher than today's $372.32, from 27.67% volatility. The simulation assumes the price drifts up at our discount rate of 9.18% a year.
At $372.32 the price implies free cash flow growing 8.8% a year for five years and then fading toward 3% over five more; its revenue has grown 6.0%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $308.49 | — |
| 9 Oct 2026 | $312.15 | — |
| 16 Oct 2026 | $317.95 | — |
| 23 Oct 2026 | $328.95 | — |
| 30 Oct 2026 | $361.39 | — |
| 6 Nov 2026 | $366.57 | — |
| 12 Nov 2026 | $372.32 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
Run a full Desk Run on LH · Labcorp company page · Call and put prices